This presentation focuses on the role of appraisers in the real estate transaction and how agents can help facilitate the appraisal process for the best outcome possible.

1. Coaches’ Corner Meeting
June XX, 2013

2. What is an Appraisal?
“An appraisal is an opinion of value.”
Can you elaborate on that statement?
How do you understand appraisals?

3. The Appraisal Process
• The appraisal is ordered by the lender by contacting an
Appraisal Management Company that contacts an
appraiser or appraisal company.
• The appraiser makes an appointment to view the
property.
• The appraiser views the property, researches the
property, and analyzes market trends and data.
• The appraiser prepares his/her report and forwards it to
the lender via the Appraisal Management Company.

4. 10 Tips for Agents
1. Don’t restrict the appraiser’s ability
to see the property.
2. If an appraiser calls, be responsive
and provide as much information as
needed, even after the transaction
closes. (see Purchase Contract,
11.5: “Buyer and Seller authorize
the Broker to report sales and
financing concessions data to the
MLS membership and MLS sold
database as applicable and to
provide this information to state
licensed appraisers researching
comparables, upon inquiry, to the
extent necessary to adjust price to
accurately reflect market value.”
How can you help the appraisal process? Here are some tips:

5. 10 Tips, continued
3. Be as descriptive in the MLS as possible about
your listing and include as many photos as your
MLS will allow.
4. Don’t use or reference tax records as your source
of information.
5. Distinguish “above grade” living area from “below
grade” living area in your MLS, particularly the
quality of finish in “below grade” living area, decks,
etc.

6. 10 Tips, continued
6. Provide an “Appraiser’s Package” in advance and
have it available at the property when the
appraiser is inspecting the property, or meet the
appraiser at the property so that you can answer
any questions or inform the appraiser of unique
features.
7. Provide a fully executed copy of the purchase
contract with all addenda.

7. 10 Tips, continued
8. Explain to the seller or buyer that the role of the
appraiser is not to confirm the sales price but to
provide the lender an independent, objective and
impartial opinion of the value of the property. (See The
Appraisal Foundation’s “A Guide to Understanding a
Residential Appraisal”)
9. Real estate salespeople and consumers can be
present during the appraisal inspection. Make sure all
parties allow the appraiser the space and time to
complete their appraisal inspection, uninterrupted.

8. 10 Tips, continued
10. Make sure the property
condition, (inside and
outside) is the best possible
for the appraisal inspection,
and inform the seller that
interior and exterior photos
(and measurements) must
be taken by the appraiser.
From: “Appraiser Insight Blog,”
National Association of Realtors®

9. “Appraisers Package”
What does an “Appraisers Package” consist of? Here
are some possibilities:
• Plats
• Surveys
• Deeds and Covenants
• HOA Documents
• Floor Plans
• Specifications

10. “Appraisers Package”
More possibilities:
• Inspection Reports
• Neighborhood Details
• Recent Similar-quality Comparables
• Detailed List and Dates of Upgrades and Remodels
• Energy-efficient Green Features
What are some pros and cons of these items? Are
there any items you would definitely not give an
appraiser?

11. Keep in Mind
• It is always a good idea to offer the comparables
used to price the subject property to the appraiser,
keeping in mind that a “comparable” is defined as a
property, should the subject become unavailable,
that would be a suitable substitute. (See more here)
• The more information an appraiser has, the more
accurate the report.

12. Keep in mind
• Appraisers must “prove” their opinions, based on
market data.
• Appraisers don’t set out to “kill the sale” but must
adhere to lender and investor guidelines and the
subject property’s neighborhood.
• Agents should not hesitate to contact an appraiser for
their guidance on matters pertaining to appraisal type
questions; however, agents cannot tell an appraiser
what the appraisal report for a particular property
should, in the agent’s opinion, say regarding value.